New York. The actions of Zoom rose sharply in early trading on Tuesday, making the video conferencing company’s market value now higher than long-established companies such as Boeing and Starbucks.
The company is one of the main beneficiaries of the coronavirus pandemic, as many more people used their videoconferencing service to work from home or have virtual meetings.
During the morning session, Zoom shares rose 33% to $ 432.45, which raised its market value to nearly $ 122 billion, after it reported explosive growth during the second quarter as more people paid for its subscription service, in order to have more control over virtual meetings.
The Zoom revenue quadrupled far more than in the second quarter of last year, to $ 663.5 million and earnings beat Wall Street forecasts.
At the current level, Zoom’s market value was greater than that of two automakers combined: General Motors and Ford, as well as the value of aviation giant Boeing and the Starbucks coffee shop chain.
In a show of confidence, Zoom raised its revenue projection for the fiscal year ending in January to nearly $ 2.4 billion, down from about $ 1.8 billion the company forecast. based in San Jose, California, in early June. The forecast is now more than double the revenue of $ 910 million that Zoom had anticipated entering its fiscal year.